Agenda item

Proposal to Establish a Joint Venture Company for Facilities Management

Minutes:

Background:

 

This report presented details of a proposal to establish a joint venture company with Norse Commercial Services Limited so that the Council would benefit from a total facilities management solution that both delivered savings from the Council’s expenditure on such activities and generated income by undertaking such activities for private and public sector clients in the region.

 

The Cabinet had considered a report in October 2012 on the issue and agreed that officers enter into due diligence discussions with Norse. Following discussions with the Council’s service managers, the services which remained within the scope of the proposal were set out in paragraph 2.6 of the report.

 

The report provided the detailed implications of establishing a joint venture company including procurement issues, governance arrangements, property rationalisation, HR issues (TUPE and pensions) and the transfer strategy.

 

A Diversity Impact Assessment screening had been undertaken as set out in Appendix 4 of the report. It was noted that diversity issues would be regularly reviewed as part of the mobilisation planning and implementation.

 

The Cabinet agreed that the decisions set out below were urgent and should therefore not be subject to call-in. In line with rule 16.11 of Chapter 4, Part 5 of the Constitution, call-in could be waived where any delay likely to be caused by the call-in process would seriously prejudice the Council’s or the Public’s interests. The Cabinet agreed to accept this as an urgent item because the budget for 2013/14 included the proposed savings in this report.

 

It was noted that the Chairman of the Business Support Overview and Scrutiny Committee had agreed that the decisions proposed were reasonable in all the circumstances and to them being treated as a matter of urgency and to waive call-in.

 

Decision number:

Decision:

63/2013

The Cabinet agreed to establish a joint venture company that is operational from 1 June 2013.

64/2013

The Cabinet agreed that Norse Commercial Services Limited be formally invited to establish a joint venture with the Authority on the terms outlined in the principal Heads of Terms subject to the satisfactory negotiation of the various legal agreements that will underpin this arrangement.

65/2013

The Cabinet agreed that the transfer should be for services described in paragraph 2.6 of the report commencing June 2013.

66/2013

The Cabinet agreed the principle of adding further Facilities Management services in later phases subject to agreeing a business case for such additions.

67/2013

The Cabinet agreed that the Chief Executive, in consultation with the Leader, will appoint Councillors and Senior Officers to be Directors of the joint venture company.

68/2013

The Cabinet agreed that regular further reports be brought back to Cabinet by the joint venture company.

69/2013

The Cabinet agreed that the Assistant Director for Legal and Corporate services determine the joint venture company name, in consultation with the Portfolio Holder for Finance, following a consultation with Members and staff.

70/2013

The Cabinet agreed that these decisions were conditional upon the outstanding matters listed in paragraph 4.66 of the report being resolved to the satisfaction of the Portfolio Holder for Finance, the Chief Executive and the Chief Finance Officer.

71/2013

The Cabinet agreed that these decisions are considered urgent and therefore should not be subject to call-in.

 

Reasons:

 

This arrangement will enable the Council to better manage the spend on activities related to facilities management, ensure the quality of services and works that are delivered and better safeguard the authority on statutory, regulatory and reputational issues. 

 

To allow the Council to take advantage of income opportunities and make efficient use of assets, workforce and knowledge.

 

The appointments indicated in paragraph 8.5 would ensure the company works under a suitable governance structure.

 

Regular reporting will ensure transparency at all stages of the company development and to ensure that the company activities are in keeping with the Council’s priorities and operating model.

 

Participation by staff in the naming of the company will contribute to staff being actively involved in setting up of company.

Supporting documents: